News Flash- SEC to Track Fund Flows, Looking for Market Timing

The SEC is going to be paying closer attention to abnormal buying and selling in mutual funds. Cash flow is one area that will get heightened scrutiny.

"If you look at fund flows in and out, you can identify funds that are susceptible to market timing and late trading," Paul Roye, director of the division of investment management at the SEC, told The Wall Street Journal. "That data can help us target firms for inspection."